Providers in the mobile space should be performing well given current mobile trends and InternetQ, who provides mobile marketing and digital entertainment solutions for mobile network operators and brands, is a case in point. Its trading update for the six months to June 30 2013 shows a 30%+ revenue increase, all organic. Even at this level, revenue and EBITDA are only in line with market expectations but that is an indicator of how much is expected of this mobile specialist which is not a bad position to be in. Growth levels are lower than H1 last year though (see here). It has concentrated on cash conversion during H1 2013 to strengthen the balance sheet and has cash equivalents of €8m.
There was growth across all divisions. MobiDialog, the mobile marketing division was a prime contributor and there was also subscriber growth in the Akazoo music download division, although we won’t know how profitable they have been until H1 results are released in September. The area to watch going forward is the mobile application proposition Minimob. The rate at which InternetQ can attract and retain developer and media brand interest will be vital but competition is fierce.
The outlook remains bright however, aided by a £10m placing at the start of July and the conditional acquisition of access, billing and digital content distribution provider Atlas Germany which is expected to be earnings enhancing in its first full year.